On June 30, 2012, Parent Company Sold Some Land to Its

question 13

Multiple Choice

On June 30, 2012, Parent Company sold some land to its subsidiary for $240,000. The land had cost Parent Company $120,000 when it was acquired three years previously. The transaction was subject to income tax at a rate of 20%. On June 30, 2014, the subsidiary sold the land to an outside party for $275,000. This transaction was also subject to income tax at a 20% rate. Parent Company owns 75% of the outstanding shares of its subsidiary and accounts for its investment using the cost method. On December 31, 2012, the land account balance in the books of Parent Company is $300,000 and in the books of the subsidiary is $300,000. No acquisition differential was allocated to land. What will be the amount of land in the consolidated balance sheet at December 31, 2012?

• A) $480,000.
• B) $504,000.
• C) $510,000.
• D) $600,000.

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Definitions:

Childhood Sexual Abuse

Involves the sexual assault or exploitation of a child by an older individual or perpetrator.

Facilitate Communication

The process of making the exchange of information easier between parties, often involving the removal of barriers or the introduction of effective communication strategies.

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A state of extreme emotional exhaustion where an individual feels overwhelmed and unable to cope with stressors.